IR-2009-66, July 14, 2009 - The Internal Revenue Service today announced a series of public forums at which individuals and representatives of diverse constituent groups will be able to provide input on the development of tax preparer performance standards.

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House Ways and Means: On Thursday, July 23rd, the HouseCommittee on Ways and Means Subcommittee on Select Revenue Measures held a hearing on “Long-Term Financing Options for the Highway Trust Fund, including Member Proposals.”The following witnesses testified before the Subcommittee: (1) The Honorable James L. Oberstar, a Representative in Congress from the State of Minnesota; (2) The Honorable John L. Mica, a Representative in Congress from the State of Florida; (3) The Honorable Peter A. DeFazio, a Representative in Congress from the State of Oregon; (4) The Honorable John J. Duncan, a Representative in Congress from the State of Tennessee; (5) The Honorable Kendrick Meek, a Representative in Congress from the State of Florida; (6) The Honorable Kevin Brady, a Representative in Congress from the State of Texas; (7) The Honorable Ken Calvert, a Representative in Congress from the State of California; (8) The Honorable Adam Smith, a Representative in Congress from the State of Washington; (9) The Honorable Jerry Moran, a Representative in Congress from the State of Kansas; (10) The Honorable Corrine Brown, a Representative in Congress from the State of Florida; (11) The Honorable Roy Kienitz, Undersecretary of Policy, United States Department of Transportation; as well as representatives from businesses, labor groups and state governments.

In his opening statement, Chairman Richard Nealstated that current revenues are not sufficient to cover the costs of maintaining and improving our transportation infrastructure, and that all 50 states need substantial revenues simply to maintain the current state of infrastructure.Ranking Member Patrick Tiberinoted that CBO projects that an extension of the current Highway Trust Fund revenue and spending levels would result in a total shortfall of more than $70 billion from fiscal years 2010 to 2015.

The witnesses presented various proposals for financing options for the Highway Trust Fund, including: (1) raising the federal gas tax by 18 cents to address the effects of inflation since the fee was last increased; (2) imposing a fee on barrels of crude oil, both imported and domestic, and an equivalent fee on imported refined gasoline and diesel; (3) raising $190 billion by taxing crude oil futures contracts at a 0.2%, with an additional 0.5% tax on crude oil options; (4) establishing a federal Highway User Rate Commission to determine biennially the federal motor fuels tax rate, to avoid the instability in the annual amount of revenue collected (and to annually index the motor fuels tax to inflation); (5) changing the user fee collection model to a vehicle miles traveled (VMT) tax; and (6) making non transportation-related tax increases or deficit spending. Some of the subcommittee Members urged Congress to support their own legislation, including H.R. 272 and H.R. 1806, two bills introduced which would allow a 25% tax credit for infrastructure investments in new track, intermodal facilities, yards, locomotives, and allow for expensing of all qualifying rail infrastructure capital expenditures; H.R. 1132, which would extend the short line railroad rehabilitation tax credit (which expires on December 31, 2009), for an additional 3 years; and H.R. 1789, a bill which would combine both the Class 1 and short line railroad tax credits.

Nomination Update

On Wednesday, July 22nd, the Senate received the nomination of Jeffrey Alan Goldstein to be an Under Secretary of the Treasury for Domestic Finance.

On Thursday, July 23rd, the SenateCommittee on Financefavorably reported by voice vote the nominations of Dan Tangherlini, to be Assistant Secretary of Treasury for Management and Chief Financial Officer, Department of Treasury; William Wilkins, to be Chief Counsel for the Internal Revenue Service and an Assistant General Counsel for the Department of Treasury; Kim Wallace, to be Assistant Secretary for Legislative Affairs, U.S. Department of Treasury; George Madison, to be General Counsel, U.S. Department of Treasury; and Rosa Rios, to be Treasurer of the United States.

Legislative Update

On Wednesday, July 8th, Rep. Barney Frank introduced H.R. 3126, “Consumer Financial Protection Agency Act of 2009,” which was referred to the Committees onFinancial Services, and Energy and Commerce. The bill would establish the Consumer Financial Protection Agency as an independent executive agency to regulate consumer financial products and services and would apply to any person engaged directly or indirectly in a financial activity, including tax-planning or tax preparation services. This new agency would have exclusive examination authority to prescribe regulations, issue guidance, or conduct examinations regarding consumer financial protection. The agency would have primary enforcement authority and any other Federal agency would only be able to initiate an enforcement proceeding after that Federal agency had referred the case and the agency had failed to act after 120-days.

On Tuesday, July 21st, Sen. Max Baucus(along with Sens. Rockefeller and Menendez) introduced S. 1474, which would repeal the provision prohibiting the crediting of interest to the Highway Trust Fund. The bill was referred to the SenateCommittee on Finance.

On Tuesday, July 21st, the House passed H.J. Res. 56, which would approve the renewal of import restrictions contained in the Burmese Freedom and Democracy Act of 2003. Sec. 202 of the bill repeals corporate estimated tax adjustments for 2010, 2011, and 2013 and increases the amount of corporateestimated tax payments (in the case of a corporation with assets of at least $1 billion, for payments due in July, August, and September, 2014) to 100.25%.

On Wednesday, July 22nd, the House passedH.R. 2920, "Statutory Pay-As-You-Go Act of 2009" by a vote of 265-166. The bill would reinstitute and update the Pay-As-You-Go requirement of budget neutrality on new tax and mandatory spending legislation, enforced by the threat of annual, automatic sequestration.

On Wednesday, July 22nd, Sen. Carl Levin introduced S. 1491(text not yet available), which would provide that corporate tax benefits based upon stock option compensation expenses be consistent with accounting expenses shown in corporate financial statements for such compensation. The bill was referred to the SenateCommittee on Finance.

On Thursday, July 23rd, the Senate passedH.J. Res. 56, thus clearing the measure for the President. Sec. 202 of the bill repeals corporate estimatedtax adjustments for 2010, 2011, and 2013 and increases the amount of corporateestimated tax payments (in the case of a corporation with assets of at least $1 billion, for payments due in July, August, and September, 2014) to 100.25%.

On Thursday, July 23rd, Rep. John Tanner(along with Rep. Sam Johnson) introduced H.R. 3306 (text not yet available), which would enhance Social Security account number privacy protections, prevent fraudulent misuse of the Social Security account number, and otherwise enhance protection against identity theft.

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